Capital Gold Group Helps Protect and Grow College Funds With Gold

November 15, 2010

LOS ANGELES, Nov. 15, 2010 /PRNewswire/ — As college tuition rises and the dollar continues to shrink in buying power, parents and grandparents are seeking alternative investments such as physical gold to protect and grow the long term funds set aside for the college education of their children and grandchildren.

The last decade could more accurately be called “the lost decade” when it comes to traditional investments. Gold outperformed the DOW, the NASDAQ, and the S&P 500, as well as U.S. Treasuries and high-grade bonds. A $1,000 investment in gold ten years ago would be worth more than $4,000 today, while $1,000 invested in the stock market at the beginning of the decade would have had approximately the same value at the end.

With the U.S. dollar plummeting 13% since June, and the recent announcement that the Federal Reserve will be embarking on a second round of quantitative easing to buy $600 billion in Treasuries in an effort to pump up the economy by increasing liquidity, critics say the program, also known as QE2, will further devalue the dollar, ultimately create inflation, and could signal an end to the 30-year bull market in bonds.

Dow Jones Newswires’s Katy Burne reported on November 8, 2010, that rates on certificates of deposit fell below 1% for the first time since the 1950s according to data by Market Rates Insight, and are now averaging 0.98%. Savings accounts and other products had already fallen below 1% this summer.

With the buying power of dollars set aside for college shrinking and investment yields falling, a shortfall is likely to occur when it comes time to pay tuition. However, college funds converted into physical gold can help keep pace with inflation and the rising cost of tuition. Parents with the foresight to move their children’s college funds into gold a mere five years ago have seen the value of their holdings double in stark contrast to other traditional investments.

But is a college education still worth the cost? According to a study that began back in 2004 by The College Board that was updated in 2007 and again this year, employees with a four-year college degree earn much more and are less likely to be unemployed that those with just a high school diploma. The 2009 unemployment rate for college grads over age 25 is 4.6% compared to 9.7% for high school grads. Women college grads today earn 79% more and men 74% more than their high school grad equivalents. After 11 years of work, a college degree leads to higher earnings, and college grads are also more likely to vote, volunteer and exercise, and less likely to smoke or become obese. Therefore, it seems that the investment in a college education pays off over the course of a lifetime, even considering the expense.

“Students are finding it necessary to take out additional loans to pay for tuition and other college expenses and are graduating with huge student loans that will take decades to repay,” said Capital Gold Group CEO, Jonathan Rose. “With the legacy of debt and deficit spending our country is leaving for future generations, our young children today need every financial advantage we can give them. College can still be a reality and not just a dream.”

Capital Gold Group, Inc. is a BBB accredited, premier provider of gold bullion, pre-1933 investment grade gold coins as well as Precious Metals IRAs, with its headquarters in Woodland Hills, California. Jonathan Rose, RFC, President and CEO, can be heard on “The Gold Show” interpreting global economic events for the average investor on over 300 syndicated radio stations nationwide. Rose is also a sought after commentator and keynote speaker on the gold markets worldwide. To receive a free Gold Guide or for more information, Capital Gold Group can be reached at 800-510-9594 or online at www.StartWithGold.com.